How Do I Obtain Exemption from Workers’ Compensation Requirements? (Construction)

Objective:

• To obtain an exemption for an LLC’s Member or for a corporation’s officer from workers’ compensation requirements.

Entities:

• Limited Liability Companies
• Corporations

Additional Information:

• In Florida, applying for or renewing an exemption from the state’s workers’ compensation law is done online.
• The applicant must personally sign the application for exemption. Failure to do so is a third-degree felony.
• There are two different sets of procedures and guidelines for applying for workers’ compensation exemption: one for those in the construction industry, and another for everyone else.

Procedure:

The first step to getting a workers’ compensation exemption is to make sure that they’re allowed to do so in the first place. Otherwise, you’ll lose out on the processing fee if your application is rejected. To be eligible, the applicant must:

• Have a Florida ID or a state driver’s license number.
• Belong to an LLC or corporation that is registered and active with the Florida Department of State’s Division of Corporations. For corporations, the officer must be listed in these records as well.
• Own at least 10 percent of the business.
• Pay a $50.00 application fee plus a $1.00 service fee.

Additionally, the applicant isn’t eligible if:

• They are affiliated with an active Stop Work Order (SWO) or Working in Violation (WIV).
• The LLC or corporation already has three officers or members. This also applies to affiliates.

Next, head over to the portal for applying for an exemption for Members and Officers in the construction industry. This can be done by clicking the blue “Construction” box in the above link, or by following this link.

The applicant needs to provide the following information:

• Their first name, last name, and middle initial.
• A Florida ID Card number OR a state driver’s license number
• The last four digits of their social security number.
• Their date of birth
• Their current email address. Make sure that it’s one that’s checked often, because this is how the Division will inform you if your application has been approved. It’s also how they’ll send you your Certificate of Exemption.

Next comes the business’s information, including:

• Its name, Federal Employee Identification Number, phone number, street address.
• Its DBA, if it has one.
• The service provided or work done by the business. This is the “scope of business.”
• The business’s document number, along with the numbers of any licenses obtained through the DBPR.
• Any affiliations with another entity or entities
  • If so, then they’ll need to list the name(s) and employee identification number(s) of each.
• The name of its worker’s compensation insurance carrier, if it has one.

You’ll also need to attest to the Fraud Notice at the bottom of the application. Finally, after you’ve double-checked all your information, you’ll be ready to hit the submit button. However, you might want to go ahead and triple-check, too – you won’t be able to make any changes on the next page.

If you’ve paid the processing and services fees and all the information in your application is correct, then the final step mostly involves waiting for Division to email over your Certificate of Exemption. This takes about thirty (30) days. If a month passes and you still haven’t heard back, you might want to reach out them yourself.

Once you receive the certificate confirming your workers’ compensation exemption in your inbox, follow the instructions inside to print it out. The law requires it. Keep it somewhere you can find it should the need arise.

FL Patel Law PLLC supports small businesses and entrepreneurs along every step of their journey. For help navigating state and federal compliance laws and regulations, contact us online or by calling (727) 279-5037.